JPMorgan Says Ethereum Upgrades Could Jumpstart $40 Billion Staking Industry

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A recent JPMorgan report estimates the crypto staking business is worth $9 billion and could reach $40 billion by 2025, if proof-of-stake becomes the dominant blockchain consensus mechanism.

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before a Senate Banking Committee hearing on Capitol Hill June 13, 2012 in Washington, DC. The committee is hearing testimony from Mr. Dimon on how JP Morgan Chase lost over’s two billion dollars in stock market trades.

According to the report, staking today generates an estimated $9 billion worth of revenue annually for the crypto industry. Authors predict that ethereum’s shift to proof-of-stake after the launch of long-anticipated ethereum 2.0 next year will spur adoption of the alternative consensus mechanism and could cause staking pay-outs to balloon to $20 billion in the quarters following the launch of Ethereum 2.0 and $40 billion by 2025.

“Not only does staking lower the opportunity cost of holding cryptocurrencies versus other asset classes, but in many cases cryptocurrencies pay a significant nominal and real yield,” the report reads. Currently staking cryptocurrencies like SOL or BNB can earn yields ranging from 4% to as high as 10% annually, according to data from stakingrewards.com. The Winklevoss crypto exchange Gemini for example, currently advertises to investors the chance to earn annual yields up to 7.

The report’s authors predicted that staking will become a growing source of income for cryptocurrency intermediaries like Coinbase, especially after Ethereum 2.0 which is scheduled to be complete in 2022. The report estimates that staking presents a $200 million revenue opportunity for Coinbase in 2022, up from $10.4 million in 2020.

 

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